Role of human capital on economic growth : A case study of Pakistan
Keywords:Human Capital, Economic Growth, IMR, IGR, GFCF.
The study observes the role of human capital formation on economic growth in Pakistan by utilized the secondary data form the period of 1990 to 2013. The study clearly revealed that education enrollment index (Proxy of human capital) health (IMR) and physical capital (FGCF, IGR) are keys to boost the economic growth of Pakistan. Data manipulated through least square multiple regression models by using E-view. The main variable human capital (Education Enrollment Index) has a positive significant impact on dependent variable GDP so it established that enrollment in education preferred for growth of the Pakistani economics and results are robust. Gross fix capital formation (GFCF) has positive significant impact on dependent variable furthermore investment growth rate (IGR) has highly significant and positive impact on GDP. There are negative but significant relationship between Infant Mortality Rate and consumer price index with gross domestic product of Pakistan respectively. These results indicate that both health and education sector should be required highly attention to sustain the economic growth of Pakistan.
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